When is the Initial Franchise Fee for a Spray Net franchise considered fully earned?

According to Spray Net's 2025 Franchise Disclosure Document, the initial franchise fee of $54,500 is deemed fully earned upon the execution of the Franchise Agreement. At this point, Spray Net has the right to collect the fee as a lump sum payment. This means that once the agreement is signed, the fee is considered earned by Spray Net, regardless of whether the franchisee ever opens their Spray Net business.

This is a fairly standard practice in the franchise industry, as the initial fee compensates the franchisor for the costs associated with granting the franchise, including training, setting up the franchisee, and providing initial support. However, it's important for prospective Spray Net franchisees to understand that this fee is generally non-refundable, except in specific circumstances outlined in the FDD, such as failure to complete the initial training program to Spray Net's satisfaction.

Spray Net also offers discounts to qualifying military veterans. Veterans who have received a discharge (other than dishonorable) as well as any active-duty personnel are eligible for a 10% discount. If the franchisee is a corporation, limited liability company, or other legal entity, the veteran participant must maintain at least 51% ownership interest in the entity to qualify for this discount. To apply for the discount, the veteran must provide a copy of form DD-214, reflecting their military status, before the Franchise Agreement is signed.